aster dm gulf business: Aster DM shareholders approve sale of Gulf business
Voting on the two resolutions proposed by the company, closed on January 22, 2024.
“In respect of Resolution 1 being the resolution for approving the sale of the GCC business as a related party transaction, 99.86% of the eligible votes were in favour on this resolution. It is to be noted that since this resolution was for approving a related party transaction, the related parties were not eligible to vote for approving the transaction. Resolution 2, being the resolution for approving the sale, of a material subsidiary was approved by shareholders with a 99.96% votes in favour of the resolution,” Aster DM said in a statement.
“We are glad that shareholders have appreciated the long-term value-unlocking opportunity in the separation of the two businesses and have strongly supported the transaction with a landslide vote in favour of the transaction,” said Dr. Azad Moopen, founder and chairman, Aster DM Healthcare.
“The investors too have shown patience and trust in the company throughout this period. As disclosed earlier, we are looking to declare previously announced dividend soon upon relevant approvals being obtained upon closing of the transaction,” Moopen added.
Aster DM Healthcare last week said its board is considering plans to distribute to shareholders about 70-80% of the $903 million it will get by selling its Gulf business, translating into a dividend to its shareholders in the range of Rs 110/- to Rs 120/- per share, days after a proxy advisory firm Institutional Investor Advisory Services India (IiAS) has asked investors to veto the deal citing lack of clarity on how Aster DM will utilise the proceeds that it will obtain by selling the unit, which contributes to bulk of its revenues and undervaluation concerns.